Page 5 - GLNG Week 25 2022

GLNG COMMENTARY GLNG

China over a 15-year period. Several smaller
Chinese companies also signed supply deals with would also be considered advantageous by
QatarEnergy in late 2021. According to Refin- Qatar, which is seeking to expand its customer
itiv Eikon data, Qatar was China’s largest LNG base in Asia. If the investments are finalised,
supplier after Australia in the first five months they would represent the first such partnership
of 2022. between Qatar and China.
Now, efforts to secure more long-term LNG
supplies are being reported to be a major driver What next?
behind CNPC and Sinopec’s plans to invest in Reports about the potential Chinese invest-
NFE. According to two of Reuters’ sources, the ments in NFE come days after QatarEnergy
two companies are negotiating with QatarEn- selected France’s TotalEnergies as its main joint
ergy to buy up to 4mn tpy of LNG each for up venture partner for development of the expan-
to 27 years. If a deal is reached, this would be the sion project. The Qatari company said more
largest supply deal to date between Qatar and partners were set to join the NFE project, with
China. final terms agreed and the relevant announce-
Entering into NFE is also anticipated to be ments coming soon.
beneficial to the Chinese companies in terms QatarEnergy received offers equivalent to
of access to expertise in an international LNG double the amount of equity in NFE that it has
megaproject. made available to partners, which it said under-
“The participation, even of a small stake, scored the “high-quality investment case” of the
would give [the] Chinese direct access to the project. Bids for equity are also understood to
highly globalised project and [the chance to] have been submitted in May 2021 by Chevron,
learn [about] its management and operational ConocoPhillips, ExxonMobil, Eni and Shell.
expertise,” said one of Reuters’ sources, which the Partners are joining the project even though
news service described as a senior Beijing-based QatarEnergy had previously said it had the
industry official. expertise and financing to go it alone on the NFE
“Chinese participation in the trains are more expansion if necessary.
of a financial investor, as the stake is very small. Judging by the reports this week, unlike deals
The key is the price negotiations for the long- with Western partners that appear to have been
term gas offtakes,” another of the sources was finalised, talks with the Chinese firms still have
quoted as saying. some way to go. But a firm agreement could be
Chinese investments and offtake agreements announced soon.™

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